# In the matter of IDBI Bank Ltd Vs. Ramesh Chandra Bardia, CP (IB)/320(KB)/2021

> NCLT judgment dated 2022-06-15. Citation: TCN-2022-NCLT-02224. The case involves an application filed by IDBI Limited under Section 95(1) of the Insolvency…

- **Court:** NCLT
- **Order date:** 15 Jun 2022
- **Citation:** TCN-2022-NCLT-02224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/idbi-bank-ltd-vs-ramesh-chandra-bardia-cp-646a0897

## Summary

### Background

The case involves an application filed by IDBI Limited under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Shri Ramesh Chandra Bardia, the personal guarantor for EMC Limited. The application seeks to recover a total debt of Rs. 126,76,18,719.24 as of 01/09/2021.

## Facts

IDBI Limited filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Shri Ramesh Chandra Bardia, who is the personal guarantor for EMC Limited. The application was filed to recover a debt of Rs. 126,76,18,719.24 as of September 1, 2021. An RP had already been appointed against the same personal guarantor in CP(IB)/318(KB)2021. The court considered the implications of Section 96 of the IBC, which provides for an interim moratorium upon the filing of an application under Section 94 or 95. The existence of the interim moratorium was a key fact in the court's decision.

## Issues and analysis

### Issue 1: Whether the present petition under Section 95(1) of the IBC can be continued against the …

**Ratio:** Section 96 of the IBC stipulates that upon filing an application under Section 94 or 95,

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**Reasoning:** The court reasoned that since an RP had already been appointed in CP(IB)/318(KB)2021 and

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**Interpretation:** Section 96 is interpreted to mean that the initiation of an insolvency process

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** IDBI Li…
- **Respondents:** EMC Lim…; Ramesh Chandra…

## Timeline

- **2021-09-01 — Debt Calculat…**: The total debt demanded was Rs.…
- **2022-05-12 — Order Res…**: The order was reserved…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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